French investment manager Amundi Real Estate has completed the acquisition of the Atrium office complex in Amsterdam's Zuidas (South Axis) district in the largest single-asset transaction ever in the Netherlands.
Vendor Icon Real Estate - the Benelux office platform of private equity firm Victory Advisors - confirmed the deal on Tuesday but did not reveal the price.
Cushman & Wakefield, which advised Amundi, later issued a statement, confirming media reports that the price was in excess of €500 mln - the largest single-asset property transaction ever in the Netherlands. Michel Wilhelm, national director Capital Markets at C&W, said: 'This unique transaction again shows that the demand for high quality and sustainable properties on prime locations remains high.'
EuroProperty, part of the PropertyEU Group, broke the news of the pending €500 mln deal back in December 2016.
The price represents a huge premium to previous valuations of Atrium from four years years ago, though the complex has been renovated and expanded since then.
Victory Advisors acquired the outdated 34,000 m2 Atrium for about €100 mln from Ireland's Avestus (formerly known as Quinlan Private) during the trough of the Dutch real estate downturn in 2013. Quinlan Private had in turn purchased the complex, located next to the World Trade Center in the South Axis business district of Amsterdam, from Tishman Speyer for €200 mln in 2007 when the market was in better shape.
Refurbishment and expansion
Victory began a major refurbishment and expansion programme to convert Atrium into a modern complex, with the addition of two new towers. When the work is finalised, Atrium will comprise 60,000 m2 of office accommodation, plus several food and beverage concepts, a fitness centre and an extensive meeting and conference centre.
All major tenants, including top-10 global law firms Hogan Lovells and CMS, Fortune 500 company Celanese and top-4 service provider Vistra, have recently signed their leases under long-term fixed contracts, which is highly unusual for multi-tenanted buildings in the Netherlands. Atrium has seen the signing of over 33,000 m2 of new leases in just 18 months.
Victory Advisors was founded by Erik Moresco, a former managing director at Blackstone, in 2009.
Commenting on Atrium, he said: 'Victory Advisors has a clear strategy based on intensive asset management and a strong understanding of the real estate we own. The group has a record of buying under-invested but fundamentally sound assets investing heavily in them and transforming the buildings into well-let, high- quality and super-prime assets. This active approach has been ably demonstrated at the Atrium building, which had a multitude of issues at acquisition and now entirely validates the Icon Real Estate approach. In the face of the overwhelming obstacles, it has above all been our conviction that has helped create this fantastic building. We are proud to leave Amundi Real Estate owning a one-of-a-kind asset, in a country of ever increasing economic importance.'
Victory Advisors enlisted developer G&S Vastgoed for the redevelopment and expansion of the Atrium complex.
Victory Advisors/Icon Real Estate was advised by CBRE, Rutgers & Posch, Rechtstaete, Freshfields and Heren2 on the sale.
Amundi Real Estate was advised by L’Etoile Properties in the acquisition process and L’Etoile will also take over the management of the property upon final delivery. Greenberg Traurig, Cushman & Wakefield and Search advised Amundi during the due diligence.
UBS Asset Management - Atrium, 7th Floor, 5 Broadgate,
London, EC2M 2QS, United Kingdom | 26 April, 08:00 - 11:00
For the first time, PropertyEU has organised a private equity real estate event examining the European market.
Hear from Ric Lewis, Chief Executive and Chairman of Tristan Capital Partners, as he delivers a TED-style talk followed by an interview on the realities of investing in 2017.
Joining him are Thomas Wels, Head of Real Estate and Private Markets at UBS Asset Management, plus two prominent investor-consultants: Paul Richards, Head of European Real Estate at Mercer and Paul Jayasingha of Willis Towers Watson.
Robin Marriott, editor of PropertyEU's CapitalWatch, is moderating the event.
- What the top private real estate firms are doing
- Which strategies investors/limited partners are keen on
- How the competitive landscape is shaping up
- Who are the emerging managers to watch?
- Insights into the fund management industry
Attendance is free but places are strictly limited. Please register here to book your place